After Obtaining an Understanding of Internal Control and Arriving at a Preliminary

question 5

Multiple Choice

After obtaining an understanding of internal control and arriving at a preliminary assessed level of control risk,an auditor decided to perform tests of controls.The auditor most likely decided that:

• A)Additional evidence to support a reduction in the assessed level of control risk is not available.
• B)An increase in the assessed level of control risk is justified for certain financial statement assertions.
• C)It would be efficient to perform tests of controls that would result in a reduction in planned substantive procedures.
• D)There were many internal control deficiencies that would allow misstatements to enter the accounting system.

---

Definitions:

See Colors

The perceptual experience of different wavelengths of light, interpreted by the visual system as colors.

Lens Adjusts

The process by which the lens of the eye changes its shape to focus light on the retina for clear vision at various distances.

Protect Eye

Measures or practices adopted to guard the eyes against injuries and harmful exposure.

Focus Objects

Objects that are the primary center of attention or interest in a particular context or scene.